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Iraq Producing Gas From Nasiriya Oilfield

Iraq has begun producing gas from the Nasiriya oilfield in the south of the country at a rate of 1.4 million cubic meters a day, Oil Minister Jabbar al-Luaibi said in a statement on Saturday.

The production is part of an ambitious plan announced by his ministry in December to more than double its oil production at the oilfield from 90,000 barrels per day to 200,000 bpd, without the help of international investors, Reuters reported.

Development plans announced at the time included using 1.4 million cubic meters of gas produced as a by-product of oil production to supply power stations in the province.

Iraq has continued to flare some of the gas extracted alongside crude oil at its fields because it lacks the facilities to process it into fuel. Iraq has said it hopes to end gas flaring by 2021, which costs the government nearly $2.5 billion in lost revenue each year, according to the World Bank.

The country also plans to have its newly restarted Qayara oil field in the north produce 60,000 bpd by the end of the year, targeting to gradually ramp up the current 30,000 bpd production, S&P Global Platts quoted the Iraqi oil ministry as saying.

The Qayara oil field was shut-in for years until last year.

Since December last year Iraq has been seeking foreign investments in major projects that would help revive its economy.